The Amount of Time it Takes to Raise Credit Scores

No one can say precisely how long it takes to raise credit scores because every situation is different. People with lots of negative information on their credit reports may need more time to raise credit scores than someone with fewer blemishes. Generally, it takes 12 to 24 months to significantly improve scores. During that time it is important to pay all bills on time while paying down balances on revolving accounts such as credit cards.

Credit Reports

Credit scores are three-digit numbers ranging from 350 to 850, and are influenced by information listed on credit reports. The more positive the information, the higher the credit score. Negative information leads to poor credit scores, with a score of 620 generally recognized as a baseline for good credit. Scores of 720 or higher are considered excellent and lead to the most attractive interest rates on credit cards and loans.

Credit Repair

Removing negative information from credit reports sometimes boosts credit scores in as little as 30 days. Negative information added to credit reports hurts credit scores most when first added, with the impact lessening over time, according to the Federal Trade Commission. Some people try to accelerate the process by having negative information removed from their reports. However, that isn't easy. Technically, negative information that is accurate cannot be removed from reports until it expires, although there are certain exceptions.

Pay-for-Delete

Creditors and debt collectors placing information on credit reports are allowed to make changes to the information -- or even delete it. Some debt collectors may agree to delete a delinquent debt if full payment is made. That's called "pay-for-delete," but not all debt collectors cooperate. Credit card companies occasionally will delete a late payment for a longtime customer whose payment arrived after the deadline. This also potentially improves credit scores within a month.

For-profit Firms

So-called credit repair firms claim they specialize in removing information from credit reports. However, the Federal Trade Commission strongly urges people to avoid the firms because of abuses, large up-front fees and poor service. The FCC maintains that people should manage their own credit repair.

Slow and Steady

Payment history and debt levels account for 65 percent of the credit score. This means an excellent credit score is impossible unless bills are paid on time and debts are low. The credit scoring model rewards people who have large credit limits but low balances. People improving their credit should pay down revolving debt to no more than 10 percent of the credit limit. That means someone with a $1,000 credit limit should carry a balance of no more than $100. Many people with credit scores in the 700s pay off balances each month.